Moody's upgrades Verallia

Moody's Investors Service said it upgraded Verallia SA’s corporate family rating to Ba2 from Ba3 the corporate family rating and changed the outlook to stable from positive.

"The upgrade to Ba2 reflects Verallia's resilient operating performance in 2020, which exceeded our previous expectations, and our view that the company will continue to report earnings growth despite the challenging trading conditions. The company further strengthened its credit metrics, supported by a diversified product offering, a number of profitability improvement measures and its prudent financial policies," said Donatella Maso, a Moody's vice president, senior analyst and lead analyst for Verallia, in a press release.

"The upgrade also reflects the company's leading position in the consolidated glass packaging industry, and its track record of profitability improvement," added Maso.

The outlook reflects the expectation that Verallia will maintain its high profitability and leverage below 4x and continue to generate positive free cash flow on a sustained basis, Moody’s said.

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